Bitcoin News Today: Bitcoin Rises to $114,345 as Fed Rate Cut Hopes Boost Crypto and Stocks

Cryptocurrencies and stocks have moved in tandem in early August 2025, as traders anticipate potential Federal Reserve rate cuts later in the year. Bitcoin briefly reached $114,345, while Ethereum climbed 2.6% to $3,533, marking a broad-based rally across digital assets. This synchronized movement reflects a shared sensitivity to macroeconomic signals, particularly expectations of monetary easing and declining inflationary pressures [3].

The U.S. Dollar Index (DXY) has fallen to 98.50, indicating reduced demand for safe-haven assets and supporting a shift toward risk-on positions [2]. The FedWatch tool estimates an 80% probability of a rate cut by September, a sharp rise from 40% just days earlier, driven by weak U.S. employment figures and signs of economic softening [5]. These developments have encouraged investors to reallocate capital into equities and cryptocurrencies alike.

The current rally echoes historical trends observed during the 2020–2024 period, when Fed policy changes directly influenced crypto valuations. Stablecoin usage has increased by 32% over the past seven months, aligning with Bitcoin’s performance and potentially signaling further appreciation if liquidity continues to improve [5]. Analysts, including Mark Moss, have pointed to this correlation as a key factor in understanding the market’s direction [7].

Institutional interest in the crypto market has also grown, with BlackRock reporting significant inflows into its GBTC and IBIT funds, reinforcing the narrative of increasing legitimacy and adoption within traditional finance [9]. Despite these bullish signs, not all market participants remain optimistic. Arthur Hayes had previously predicted a drop to $100,000, but Bitcoin has held near $114,000, showing resilience amid short-term volatility [10].

The broader market also experienced a brief selloff, with total crypto market capitalization dropping over 5% in 48 hours [6]. However, the subsequent recovery to around $3.6 trillion suggests that investor sentiment remains cautiously positive. This resilience has been attributed to renewed confidence following a period of uncertainty and liquidations in July [11].

While the current environment supports a tentative recovery, the sustainability of Bitcoin’s gains remains uncertain. Analysts have emphasized that macroeconomic stability, regulatory clarity, and continued adoption will be critical in shaping the market’s future trajectory [12]. For now, the crypto market appears to be aligning with broader financial markets, with both Bitcoin and stocks responding to the evolving Fed narrative.

[1] https://coinedition.com/trump-3-trillion-stablecoin-plan-sets-bitcoin-price-1-4-million-target/

[2] https://www.binance.com/en/square/post/27825061296977

[3] https://m.economictimes.com/markets/cryptocurrency/crypto-news/bitcoin-steadies-near-114k-amid-fed-rate-cut-hopes-ethereum-cardano-xrp-jump-up-to-8/articleshow/123090770.cms

[4] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-clings-114k-hayes-bearish-call-faces-technical-resistance-2508/

[5] https://www.ainvest.com/news/bitcoin-news-today-trump-3-7t-stablecoin-plan-sparks-bitcoin-1-4m-price-target-2508/

[6] https://bravenewcoin.com/insights/bitcoin-btc-price-today-bitcoin-tumbles-under-114k-while-trump-medias-bold-btc-bet-fuels-market-speculation

[7] https://coinpedia.org/news/why-is-crypto-market-going-up-today-xrp-leads-with-7-gains-btc-and-eth-lag/

[9] https://cryptorank.io/news/feed/e6382-trump-3-trillion-stablecoin-plan-sets-bitcoin-price-1-4-million-target

[11] https://cryptonews.net/news/analytics/31371245/

[12] https://crypto-economy.com/xrp-and-ethereum-soar-altcoins-show-strength-following-week-of-losses/